Meeting Rs 1-trillion divestment target plausible, say investment bankers

The ETF component is expected to form a considerable chunk of this fiscal's disinvestment proceeds

Weak market conditions notwithstanding, the Centre has a good chance of meeting the disinvestment target for 2019-20, say investment bankers.  Finance Minister Nirmala Sitharaman has revised the disinvestment target to Rs 1.05 trillion, from the earlier target of Rs 90,000 crore set during the interim Budget.

Investment bankers say the government achieved a similar target in 2017-18 and a considerably steep target last fiscal, despite challenging market conditions.

“It’s a challenging target, but I am sure there is enough appetite in the market as we stand today,” says Ajay Saraf, executive director, ICICI Securities.

The government had exceeded the disinvestment